Minn.'s aging population poses budget challenges

Medical and long-term care costs the state subsidizes are already rising fast, crowding out available money for other things.

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By Associated Press

Crookston Times - Crookston, MN

By Associated Press

Posted Mar. 5, 2013 at 9:00 PM

By Associated Press
Posted Mar. 5, 2013 at 9:00 PM

St. Paul, Minn.

Minnesota is headed toward a significant milestone in which more of its residents are senior citizens than school-aged.

State Demographer Susan Brower told a panel of top legislators on Monday that Minnesota is on course to reach that point in 2020. It represents the point when those older than 65 years are a bigger share of the state population than those between 5 and 17 years old.

The demographic trends are important because they suggest where future budget pressures lie. Medical and long-term care costs the state subsidizes are already rising fast, crowding out available money for other things. And more retirees mean fewer income tax dollars will be coming in.